Risk of Deregistration: CIPC Enforces Ownership Disclosure

Companies and close corporations registered with the CIPC must now include beneficial ownership information in their annual filings. Beneficial ownership refers to the true owners of a company, even if they are not listed as the formal owners. This requirement is part of an effort to prevent money laundering and terrorism financing, following the amendment to the Companies Act in 2022.

From 24 May 2023, all entities must submit their annual returns along with declarations of who really owns the company. They need to update this information within 30 days of their company's anniversary date. Starting from 1 July 2024, the CIPC will not accept annual returns unless these ownership details are included and up-to-date.

If companies do not comply with these new rules, they could face penalties, investigations into their governance processes, and possibly even deregistration for non-compliance.

The notice also provides links to webinars, presentations, and user guides for further guidance on these changes and encourages businesses to ensure their compliance to maintain good corporate governance and operational continuity.